Foreign Exchange & Fixed Income

In an interview with Reuters, Mexico’s incoming central bank governor Alejandro Diaz de Leon said inflation may not fall as forecast because of recent and future shocks, laying out a cautious stance that may bode for steady or even higher interest rates ahead. Diaz spoke exclusively to Reuters hours after Mexico’s president named him the new governor of the central bank and warned that the inflation outlook deteriorated in recent months, citing recent and future shocks including the U.S. Federal Reserve’s monetary position and Mexico’s tight labor market.